Miracle Life Inc.
MID TERM ESSAY Course: CORPORATE FINANCE (FIN 6160) Case study: "MIRACLE LIFE, Inc"
Miracle Life Inc., founded in 1980 by Angela Simpson, is one of the companies possessed the largest global marketing network in the world which sells products to control overweight, nutritional supplement products and personal health care products with the goal: "to improve health and happiness of people around the world. " From the early years since its establishment, the company has gained strong growth. If in 1982, the turnover of Miracle Life reached 2 million, by 1992, sales reached $ 200 million and concurrently, the enterprise has expanded the worldwide scope of business activities. Until 2007, revenue of the company gained …show more content…
In 1986, the company began trading on the NASDAQ market and until February 2007, Miracle Life became a second public company which is listed at the New York Stock Exchange under the symbol MLI. At the end of that year, the stock of MLI has appreciated 47% and latched at 58.91 USD/ share. MLI has become famous on Wall Street. Those who desire to be richer have been attracted by the profit growth achievements in a long time of this company, and they believe that the company will also be able to maintain a high growth of revenue in the next time. However, some analysts still wonder about the sustainability of the business model of this enterprise. This essay will analyze the financial of MLI in the previous years in order to have a clear view about this company.
Question 1: Estimate Beta coefficient (β) of the companies: RELV, USANA, NUS, SMG, MLI Beta coefficient (β) is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta as the tendency of a security's returns to respond to swings in the …show more content…
➢ Asset Management:
|Indicators |2004 |2005 |2006 |2007 |
|Inventory turnover |9.7 |7.6 |7.0 |9.0 |
|(Cost of goods sold / Inventories) | | | | |
|Days in inventory |37.5 |47.8 |51.9 |40.5 |
|(365 / Inventory turnover) | | | | |
|Account receivable turnover |13.5 |15.4 |12.2 |12.6 |
|(Sales / Account receivables) | | | | |
|Day sales outstanding ( DSO) |27.0 |23.7 |29.9 |29.1 |
|(365 / Account receivable turnover) | | | |
Miracle Life Inc., founded in 1980 by Angela Simpson, is one of the companies possessed the largest global marketing network in the world which sells products to control overweight, nutritional supplement products and personal health care products with the goal: "to improve health and happiness of people around the world. " From the early years since its establishment, the company has gained strong growth. If in 1982, the turnover of Miracle Life reached 2 million, by 1992, sales reached $ 200 million and concurrently, the enterprise has expanded the worldwide scope of business activities. Until 2007, revenue of the company gained …show more content…
In 1986, the company began trading on the NASDAQ market and until February 2007, Miracle Life became a second public company which is listed at the New York Stock Exchange under the symbol MLI. At the end of that year, the stock of MLI has appreciated 47% and latched at 58.91 USD/ share. MLI has become famous on Wall Street. Those who desire to be richer have been attracted by the profit growth achievements in a long time of this company, and they believe that the company will also be able to maintain a high growth of revenue in the next time. However, some analysts still wonder about the sustainability of the business model of this enterprise. This essay will analyze the financial of MLI in the previous years in order to have a clear view about this company.
Question 1: Estimate Beta coefficient (β) of the companies: RELV, USANA, NUS, SMG, MLI Beta coefficient (β) is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta as the tendency of a security's returns to respond to swings in the …show more content…
➢ Asset Management:
|Indicators |2004 |2005 |2006 |2007 |
|Inventory turnover |9.7 |7.6 |7.0 |9.0 |
|(Cost of goods sold / Inventories) | | | | |
|Days in inventory |37.5 |47.8 |51.9 |40.5 |
|(365 / Inventory turnover) | | | | |
|Account receivable turnover |13.5 |15.4 |12.2 |12.6 |
|(Sales / Account receivables) | | | | |
|Day sales outstanding ( DSO) |27.0 |23.7 |29.9 |29.1 |
|(365 / Account receivable turnover) | | | |